Is Solana’s SOL Prepared to Reach $200 in Q4 2024?

• Solana’s upward trend appears to be losing momentum following a recent surge above $150. 
• On-chain metrics reveal contradictory insights regarding whether SOL can climb to $200.

Solana [SOL] was trading at $144 at the time of writing. Although it bounced from a significant support level, SOL has declined about 6% over the past month.  

Last week, Solana experienced a robust recovery, with prices rising from $127 to $151, largely fueled by positive momentum from the broader cryptocurrency market, as Bitcoin [BTC] and other altcoins also saw gains. 

With signs of fatigue in Solana’s rally, can on-chain metrics back a long-term bullish scenario that might push prices to $200? 

Solana’s Active Addresses 

Analytics from Artemis indicate that while Solana’s monthly active addresses recently reached a record level, daily active addresses are showing a decrease in short-term participation. 

On September 19th, Solana’s daily active addresses peaked at 5.5 million, but this has since dropped to 3.5 million. 

Source: Artemis

The decline in Solana’s daily active addresses suggests a reduction in network engagement. To reach $200, SOL price needs a resurgence in network activity. 

Low dApp Volumes 

Data from DappRadar reveals that decentralized application (DApp) activity on Solana has been significantly low in the past month. 

DApp volumes on the blockchain have plummeted to $121 million, a drastic decline from over $400 million noted in late August. 

A similar trend is evident in transaction counts and Unique Active Wallets (UAWs). 

Source: DappRadar

For SOL to continue its upward trajectory, an increased demand for the token through user interactions with dApps on the blockchain is essential. 

DeFi TVL Exceeds $5 Billion 

This month, the Total Value Locked (TVL) in decentralized finance (DeFi) on the Solana blockchain has exceeded $5 billion for the first time. 

As reported by DeFiLlama, Solana has experienced an addition of over $500 million to its TVL in just two weeks.

A thriving DeFi ecosystem on Solana could positively influence prices as users engaging with the protocols require SOL for transaction settlements. 

Jupiter is one of the protocols contributing to this DeFi boom, recently hitting an all-time high in its TVL. 

Check out Solana’s [SOL] Price Prediction for 2024–2025

As Solana’s network indicators reflect mixed signals, the long/short ratio reveals a marginally higher number of short positions than long ones.

This implies that traders are not fully confident in Solana’s capability to escalate prices to $200 in the near term. 

Source: Coinglass